I am seeking some best practices around performance management - productive time assumptions. What`s making a basic difference? Productive vs non productive time (absences, time for non delivery meetings, time for development), learning curve, system downtime etc... How does the total full time employee time then get translated into the productive time left to deliver the service?

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HR Business Partner in Manufacturing, 1,001 - 5,000 employees
The most effective use of performance management is 360 degrees, but most companies do not use it. only the evaluation of the manager can cause difficulties in managing this process. Taking immediate action after the performance evaluation can help us to carry out the process well. At the same time, performance management should not be once a year, but every 3 months in my opinion.
HR Manager, Self-employed
In performance management, it's important to differentiate between productive and non-productive time. To determine the actual time available for delivering the service, you subtract non-productive time from the total full-time employee time. This helps ensure that resources are allocated effectively and enables fair evaluation of performance. To increase the productive time left to deliver the service we can do multiple things, like, streamline the process, equip with automation and technology, continuous training and development of the employees, and regular performance reviews, to name a few.
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HR Manager, Self-employed

Thank you - so what do you qualify as non productive time please?

HR Manager, Self-employed

Hi Agnieszka, Productive time is when the employee is actively working on things that are part of their job and is contributing to the corganization's goals whereas, Non-productive time is when the employees are not doing tasks that relate to their job or the company's goals. Non-productive time includes personal breaks, internet browsing for leisure, long lunch breaks or time spent in meetings that aren't directly related to their task, dealing with paperwork or administrative tasks that are not related to their core reponsibilities, or time spent trying to understand confusing instructions or poor time management and so on.

HR Manager in Healthcare and Biotech, 51 - 200 employees
At our organisation, we follow a 360 degree review process- which occurs bi-annually. This 360 degree review is done by - manager, peers, other team leaders/managers, self. We also do a short checkup every 3 months, within self and manager to keep track of your progress. 

Recently, we were able to add in our core values in the review cycle as well. We believe by doing this , we are now able to uphold our values in our day to day work styles. 
HR Manager in Consumer Goods, 501 - 1,000 employees
Effective performance management involves understanding and optimizing productive time assumptions, distinguishing between productive and non-productive time, and accurately calculating the productive time available for service delivery. Here are some best practices to consider:

Define Productive and Non-Productive Time: Clearly define what constitutes productive and non-productive time in your organization. Productive time includes hours spent directly contributing to the core business activities, such as completing tasks, projects, and delivering services. Non-productive time encompasses absences (sick leave, vacation), non-delivery meetings, training, breaks, system downtime, and other non-work-related activities.

Set Expectations and Targets: Establish realistic productivity expectations and targets based on industry standards, historical data, and employee capabilities. Ensure that these expectations align with your organization's goals and objectives.

Measure and Track Performance: Regularly measure and track individual and team performance against the established targets. Use key performance indicators (KPIs) and metrics to monitor productivity and identify areas for improvement.

Consider Learning Curves: When onboarding new employees or introducing new processes, consider the learning curve that may impact productivity. Productivity might dip initially as employees become familiar with their roles and responsibilities, but it should gradually improve over time.

Account for Absences and Non-Productive Time: Factor in employee absences, time for non-delivery meetings, training, and other non-productive activities when calculating overall productive time. Use historical data or industry benchmarks to estimate these hours accurately.

Address System Downtime: System downtime or technical issues can disrupt productivity. Monitor and minimize such occurrences and have contingency plans in place to manage productivity during downtime.

Implement Time Tracking and Management Tools: Utilize time tracking and management tools to record and analyze employee work hours, helping to identify patterns and areas for improvement.

Encourage Work-Life Balance: Strive for a healthy work-life balance, as burnout and excessive overtime can reduce overall productivity. Encourage employees to take breaks and vacations to recharge.

Continuous Improvement: Regularly review and refine your productive time assumptions and performance management strategies based on data-driven insights and feedback from employees. Continuously seek ways to enhance productivity without compromising employee well-being.

Employee Development: Invest in employee development and training to improve skills and competencies, which can lead to increased productivity over time.

It's essential to remember that performance management is not solely about maximizing productive time but also about creating a positive work environment, fostering employee engagement, and supporting overall organizational success. By striking the right balance between productivity and well-being, you can create a culture that encourages high performance and long-term success.
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HR Manager, Self-employed

This is very helpful, thank you!

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